M&T Bank reported first-quarter 2026 net income of $664 million, down from $759 million in the fourth quarter of 2025 but up from $584 million a year earlier. Diluted earnings per common share were $4.13, compared with $4.67 in the prior quarter and $3.32 in the first quarter of 2025.
Net interest income was $1.752 billion, down $27 million from the fourth quarter but up $57 million from a year ago. On a taxable-equivalent basis, net interest income was $1.763 billion, down 2% sequentially and up 3% year over year. The net interest margin widened to 3.71% from 3.69% in the fourth quarter and 3.66% in the year-earlier quarter.
Average loans rose to $138.423 billion from $137.600 billion in the fourth quarter and $134.844 billion a year earlier. Average commercial and industrial loans increased to $63.804 billion from $62.257 billion in the prior quarter and $61.056 billion a year ago. Average commercial real estate loans fell to $23.496 billion from $24.101 billion in the fourth quarter and $26.259 billion in the first quarter of 2025. Average consumer loans were $26.306 billion, down slightly from $26.477 billion in the fourth quarter but up from $24.353 billion a year earlier.
Average investment securities climbed to $37.845 billion from $36.705 billion in the fourth quarter and $34.480 billion a year earlier. Average interest-bearing deposits at banks dropped to $16.231 billion from $17.964 billion in the fourth quarter and $19.695 billion a year earlier.
Provision for credit losses was $140 million, up from $125 million in the fourth quarter and $130 million a year earlier. Net charge-offs were $105 million, down from $185 million in the fourth quarter and $114 million in the first quarter of 2025. Net charge-offs as a share of average loans improved to 0.31% from 0.54% in the fourth quarter and 0.34% a year ago.
Noninterest income totaled $689 million, little changed from $696 million in the fourth quarter but up from $611 million in the first quarter of 2025. Mortgage banking revenues fell to $127 million from $155 million in the fourth quarter but rose from $118 million a year earlier. Service charges on deposit accounts were $139 million, versus $140 million in the fourth quarter and $133 million a year ago. Trust income was $183 million, compared with $184 million and $177 million, respectively. Other revenues from operations rose to $187 million from $163 million in the fourth quarter and $142 million a year earlier.
Noninterest expense increased to $1.438 billion from $1.379 billion in the fourth quarter and $1.415 billion a year earlier. Salaries and employee benefits rose to $914 million from $809 million in the fourth quarter and $887 million a year ago. Outside data processing and software costs were $144 million, up from $146 million in the fourth quarter and $136 million a year earlier. Professional and other services were $93 million, down from $105 million in the fourth quarter but up from $84 million a year ago.
The efficiency ratio was 58.3%, compared with 55.1% in the fourth quarter and 60.5% a year earlier. Return on average assets was 1.26%, down from 1.41% in the fourth quarter but up from 1.14% a year ago. Return on average common shareholders’ equity was 9.67%, compared with 10.87% in the prior quarter and 8.36% in the first quarter of 2025.
At March 31, 2026, nonaccrual loans were $1.240 billion, down from $1.252 billion at year-end 2025 and $1.540 billion a year earlier. Nonperforming assets were $1.267 billion, versus $1.287 billion in the prior quarter and $1.574 billion a year ago. Loans past due 90 days or more rose to $646 million from $561 million in the fourth quarter and $384 million a year earlier.
The allowance for loan losses was $2.136 billion, up slightly from $2.116 billion at year-end but down from $2.200 billion a year earlier. It remained 1.53% of total loans, unchanged from the fourth quarter and below 1.63% in the first quarter of 2025.
M&T repurchased 5.5 million shares during the quarter at a total cost of $1.25 billion. Common shareholders’ equity per share increased to $173.82 from $173.49 in the fourth quarter and $163.62 a year earlier. Tangible equity per common share was $115.96, down from $117.45 in the fourth quarter but up from $111.13 a year earlier. The estimated CET1 capital ratio was 10.33%, down from 10.84% at year-end and 11.50% a year earlier. Today the company's shares have moved 0.48% to a price of $205.73. For the full picture, make sure to review M&T BANK CORP's 8-K report.
